Interpol Targets $11B Crypto Scam Networks Using Trafficked Labor

Interpol’s recent resolution at its General Assembly in Marrakech marks a significant escalation in global law enforcement’s recognition of the threat posed by scam compounds that rely on human trafficking, online fraud, and coerced labor. According to the organization, victims from over sixty countries are being recruited under the pretext of lucrative overseas jobs, only to be trafficked into compounds where they are forced to carry out illicit schemes including voice phishing, romance scams, investment fraud, and cryptocurrency scams targeting individuals worldwide. The criminal networks operating these centers use advanced technologies to deceive victims and mask their operations, demonstrating what Interpol describes as a “highly adaptive nature” that spans dozens of countries.

The scam center model first gained international attention in Southeast Asia, where compounds in Myanmar, Cambodia, and Laos were documented as sites of large-scale trafficking and coerced online fraud. Victims originated from the region as well as from China and India beginning in January 2023. By May of the same year, the phenomenon had spread to certain regions in Russia, parts of Colombia, East African coastal countries, and even parts of the UK, according to a separate Interpol report. This rapid geographical expansion underscores the transnational character of the criminal networks and their ability to exploit vulnerable populations across multiple continents.

The criminal network’s ties to cryptocurrency were first revealed in July last year when an online marketplace operated by Huione Group, a Cambodia-based financial conglomerate headquartered in Phnom Penh, was found to have processed more than $11 billion in crypto transactions connected to scam compound operators. This staggering figure highlights the massive financial scale of these operations and their deep integration with digital assets. By May earlier this year, the U.S. Treasury had moved to cut off the group from the U.S. financial system after alleging more than $4 billion in laundering activity tied to scam compound operations.

According to Ari Redbord, a former Treasury Department official now working as global head of policy at blockchain intelligence firm TRM Labs, the money movement patterns have evolved significantly. “A few years ago, flows from pig-butchering operations followed relatively predictable paths through mainstream exchanges. Today, they are far more reliant on stablecoins, low-fee chains, and rapid cross-chain swaps to fragment movement and buy time,” Redbord told Decrypt. TRM Labs has also observed “heavier use of Chinese money-laundering networks, OTC brokers, and informal cash-out infrastructure—all of which help operators move value outside the reach of traditional financial controls.”

The international response to these criminal networks is gaining momentum through enhanced coordination among global law enforcement agencies. Interpol’s resolution represents “one part of a broader international shift,” according to Redbord, who noted that with the U.S. recently launching a strike force, “partners across Asia and Europe” are now “increasingly aligned on typologies linked to trafficking-driven scam compounds.” While such networks “thrive on cross-border seams,” Redbord added that those seams are now “narrowing” such that “action windows that simply didn’t exist a few years ago” could now be seen.

This coordinated approach extends to asset tracing and financial disruption. “Coordinated asset tracing to track lost funds isn’t ‘just feasible,'” Redbord said, emphasizing that the process “works when jurisdictions move together.” He added: “When coordination clicks, you can actually cut off the exits these networks rely on.” The global law enforcement community’s ability to share intelligence and coordinate actions across borders represents a significant advancement in combating these adaptive criminal enterprises, though the networks continue to evolve their tactics in response to increased scrutiny.